The dollar moved lower as expected. The target zone was 74.158 to 74.130. This target has been exceeded. A new target has been calculated and price is currently within this target. We are expecting a trend change very soon.
The next movement for the dollar should be an impulsive third wave upwards.
Any further movement downwards of wave 2 pink may not move beyond the start of wave 1 pink. This wave count is invalidated with movement below 72.70.
The dollar continues to move lower as expected from last analysis, but it is now below our target zone.
The only change in this analysis from last is the labeling within the final fifth wave at orange degree. This fifth wave is extending and what we had previously labeled as wave 5 orange was just wave 1 purple within wave 5 orange.
At 73.60 wave 5 purple within wave 5 orange will reach 0.382 the length of wave 1 purple.
At 73.68 wave 5 orange will reach 0.618 the length of wave 3 orange.
At 73.66 wave C green in its entirety will reach 2.618 the length of wave A green which can be seen on the daily chart.
This gives us a high probability target zone from 73.68 to 73.60.
When we have movement above the small orange trend channel on the hourly chart we shall have our first indication of a trend change.
Movement above 74.93 would confirm a trend change. At that stage upwards movement may not be just a second wave correction within wave 5 orange and so wave 5 orange (if its start is correctly labeled) would have to be over. At this point we would also see significant movement above the trend channel.
